Business news 19 November 2025
UK insolvencies have surged again, rising 16.7% year-on-year in October — a clear warning sign that recessionary pressures are tightening across the economy. Businesses are pausing investment, investors are ditching UK stocks, and political signals point to tax rises ahead of the Budget. Inflation has cooled modestly, but core pressures remain sticky, and markets continue to sell off globally. SMEs trading on credit face a tougher and riskier landscape.
James Salmon, Operations Director.
BUSINESS STORIES
1. Insolvencies rise sharply as recession fears deepen
UK corporate insolvencies increased 1.7% month-on-month and 16.7% year-on-year, with 2,029 companies entering insolvency in October.
Breakdown:
- 301 compulsory liquidations
- 1,592 CVLs
- Remaining cases split across other procedures
Azets’ Matthew Richards warned rising costs and political uncertainty are pushing more firms into distress, while EY-Parthenon’s Simon Edel urged businesses to prioritise liquidity and debt-pressure management.
Why it matters for SMEs: More customers are now at real risk of failure — increasing exposure to bad debts.
2. Business leaders pause investment amid Budget fears
Barclays’ Prosperity Index shows SMEs could add £60bn to the economy if the Budget supports them. But caution is rising: cash inflows fell 1.9% in Q3 while SME savings rose 6.1%.
55% of leaders have paused investment due to uncertainty, though 80% would invest if stability returned.
Why it matters for SMEs: Paused investment and falling cash inflows indicate tightening liquidity — a key trigger for late payments.
3. Investors flee UK stocks ahead of expected tax rises
Bank of America reports the fastest sell-off in UK equities since the October 2022 mini-Budget. Only 3% of global fund managers expect the FTSE 100 to outperform next year.
Why it matters for SMEs: Falling investor confidence filters into the real economy — banks tighten lending and customers become more cautious.
4. UK inflation cools to 3.6% — but core pressures remain sticky
Inflation fell from 3.8% to 3.6% in October, while core inflation dipped marginally to 3.4%. This is one of the last major indicators before next week’s Autumn Budget.
Why it matters for SMEs: Lower headline inflation helps, but stubborn core inflation keeps interest rates high — limiting borrowing and slowing payments.
5. Bank of England: too early for further rate cuts
BoE Chief Economist Huw Pill said underlying price pressures are weaker than they appear but warned it is still too soon for another rate cut. Shifts in wage and price-setting behaviour may keep inflation sticky.
Why it matters for SMEs: Delayed rate cuts mean borrowing costs stay high — increasing pressure on working capital.
6. London businesses expect pay freezes amid tax concerns
A survey by the LCCI shows over 90% of London leaders fear tax rises in the Budget. Half say they may freeze pay, stop bonuses or pause hiring.
Why it matters for SMEs: Pay freezes signal weaker confidence — often followed by slower invoice payments.
7. UK businesses shifting supply chains away from China
More than half of UK firms are reworking supply chains; 20% have already moved production closer to home. Santander warns geopolitical tensions and weak domestic growth are key obstacles.
Why it matters for SMEs: Transition costs and disruption can hit customer cash flow and delay payments.
8. AI chatbots giving misleading financial advice
Which? found major chatbots providing incorrect or non-compliant financial guidance. The FCA warned that AI advice is not regulated.
Why it matters for SMEs: Customers acting on bad advice can make poor financial decisions, increasing credit risk.
9. Tech stocks slump; Bitcoin falls sharply
The Nasdaq is down more than 6% in recent days as investors reassess AI valuations. Nvidia fell 2.8% ahead of earnings. Bitcoin has dropped to around $93,000, far below its October record.
Why it matters for SMEs: Market volatility increases uncertainty — tightening credit conditions.
10. FTSE 100 falls for fourth straight session
London’s blue-chip index dropped more than 1.5%, closing just above 9,500.
Why it matters for SMEs: Sustained market declines point to weakening confidence and tighter financial conditions.
11. Reeves targets stronger fiscal buffer but may need new taxes
Lucy Rigby said the Budget will show “more resilient public finances,” but economists doubt Reeves can raise the required £20bn. Income tax rises or new taxes may be needed.
Why it matters for SMEs: Any additional tax burden reduces disposable income and business margins — weakening cash flow.
12. Graduate pay premium halves since 2007
Real graduate pay has fallen 30%, leaving graduates just 32p per hour better off than minimum-wage workers after tax and student-loan repayments.
Why it matters for SMEs: Lower earnings among young professionals weaken demand and increase vulnerability to payment issues.
13. Depression surges among middle-aged women
IFS data shows 21% now experience symptoms of depression — driven by financial stress and caring duties.
Why it matters for SMEs: Mental-health pressures reduce workforce participation and financial stability — increasing credit risk.
14. Reform UK clash: taxes vs spending cuts
Nigel Farage says Reeves could avoid tax rises with £25bn in cuts; Zia Yusuf called raising taxes “treachery.”
Why it matters for SMEs: Ongoing tax uncertainty disrupts planning and cash-flow forecasting.
15. Mansion tax risks hitting London homeowners hardest
A 1% annual levy on homes over £2m would disproportionately hit London properties, risking market distortions.
Why it matters for SMEs: Falling high-end property values weaken spending among affluent clients — increasing credit risk.
16. ExxonMobil to close Fife plant in 2026
Closure of the Fife Ethylene Plant puts over 450 roles at risk. Scottish ministers call it a major economic blow.
Why it matters for SMEs: Local supply-chain disruption increases vulnerability for regional businesses.
Market Snapshot
Global markets continued to slump over the past 24 hours as investors moved sharply into “risk-off” mode, driven by concerns over stretched AI valuations, interest-rate uncertainty, and geopolitical tensions.
UK Markets
The FTSE 100 suffered another heavy loss on Tuesday, falling 1.3% to 9,552.30 — its largest single-day drop since April and its fourth consecutive decline.
A large majority of stocks fell, with 86 out of 100 constituents down.
- HSBC was the biggest drag on the index, falling 3.4%.
- Melrose Industries saw the steepest individual decline at 3.9%.
Market sentiment remains fragile as investors reassess UK growth prospects and the potential tax implications of next week’s Budget.
European Markets
Europe recorded its worst session since August, with the Stoxx 600 down 1.7% to a seven-week low.
All sectors fell, and 94% of stocks ended the day in negative territory.
- Miners dropped sharply as aluminium and copper prices weakened.
- Banks and automotive shares also dragged the index lower.
The broad sell-off was driven by concerns over slowing demand, falling commodity prices, and global risk aversion.
US Markets
US equities fell for a fourth straight day:
- S&P 500: –0.8%
- Dow Jones: –1.1%
- Nasdaq: –1.2%
Tech shares led the declines:
- Nvidia: –2.8% ahead of earnings
- Microsoft: –3% after a broker downgrade
- Amazon: –3.6% following the same downgrade
Fears are growing that expensive AI-related stocks may be overvalued. Roughly $1.6 trillion was wiped off global equities on Tuesday alone as investors reassessed the outlook for growth and corporate profits.
Currency Markets
Pound Sterling
Sterling came under pressure after UK inflation slowed to 3.6%, meeting expectations.
Initially steady, the pound turned lower as traders increased bets on a December Bank of England rate cut, with odds rising to 82%.
Sterling remains technically weak, trading well below its 200-day moving average (1.3290).
It fell 0.08% to $1.3145, marking its third straight daily decline.
US Dollar
The dollar had a mixed performance. It initially slipped after weak ADP payroll data showed US private employment contracting.
However, sentiment shifted, and the Bloomberg Dollar Spot Index rose 0.2% this morning, reaching its strongest level since November 7 as traders positioned for key data releases and earnings.
Commodity Markets
Energy
European natural-gas prices rose to a two-week high earlier this week on cold-weather demand and reduced LNG arrivals.
Prices have since pulled back as updated forecasts suggest milder temperatures next week.
Oil markets were relatively steady, though:
- US retail gasoline rose to $2.939 per gallon
- Diesel climbed to $3.868
Ongoing Ukrainian attacks on Russian refineries continue to distort supply flows, widening Asia’s gasoil discount to Europe to a 19-month low.
Metals
Gold remained firm above $4,000/oz, buoyed by expectations of strong 2026 returns.
December futures rose $22 to $4,088.50.
Base metals — particularly aluminium and copper — remain under pressure as global industrial demand softens.
What’s Driving Markets
Investors are focused heavily on Nvidia’s earnings, widely seen as a test of whether AI-related stocks can justify their valuations.
Markets are also watching for the return of delayed US data and the Federal Reserve’s next policy signals.
Overall sentiment remains risk-averse due to:
- Overstretched valuations in tech
- Uncertainty about policy rates
- Continued geopolitical tensions
What this means for SMEs:
Risk-off markets typically lead to tighter lending, slower consumer activity, and a higher risk of payment delays from customers — especially those sensitive to interest-rate changes or market volatility.
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To discuss membership or upgrading your support, call Peter Uwins, CPA’s National Sales Manager, on️ ️ 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
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Insolvency Notices
Administrators Appointed
- CUSTOM INSULATION LTD
- EARL TRANSPORT LIMITED
- GASTRO PUBS LIMITED
- HADFIELD SERVICES LIMITED
- NEW LEAF PLANTS LTD
- ONCE UPON A TIME LONDON LTD
- TALISMANICO LIMITED
- WILLIAM HERMAN LIMITED
Liquidators Appointed
- AGILBILITY LIMITED
- AIR STAR LIMITED
- ALBION CONSULTANCY AND TREATMENT LTD
- AMETHYST LETTINGS LIMITED
- BENTLEY PROPERTIES (UK) LIMITED
- BRUSHWARE HOLDINGS LIMITED
- CORBETT CABLE CONTRACTORS LIMITED
- DC01 PO LIMITED
- DRIVERS OF PRESTATYN LIMITED
- EMIKO PROFESSIONAL SERVICES LTD
- FELSTON CONSULTING LIMITED
- FLIGHTS CONFERENCE SERVICES LIMITED
- FOR ALL BUSINESS LTD
- GILSTEAD FINANCIAL LTD
- GIMLET CONSULTING LIMITED
- GLOBAL SALES COMPLIANCE LIMITED
- HAND TO SCALE LIMITED
- INDERFLAME HOLDINGS LIMITED
- J C CORPORATE (BEDFORD) LTD
- JHB KITCHENS LIMITED
- JLP CONSULTANCY LTD
- KLK COMMUNICATIONS LIMITED
- M H STANIFORTH LIMITED
- M.H. PROPERTIES LIMITED
- MANTA SOFTWARE UK, LTD.
- ORCHARDS OF LONDON LIMITED
- PIERCE PRECISION ENGINEERING LIMITED
- PJT HOLDINGS LIMITED
- PRIESTLEY GROUP LTD
- REGRIMM LIMITED
- SALVAGE 75 LIMITED
- SANRIC LTD
- SPONSORSHIP & PROGRAMME PLANNING LTD.
- SPEC ELECTRICAL AND VENTILATION LTD
- STELLAR ENERGY ADVISORS GROUP LIMITED
- TAKUMA (UK) LIMITED
- THE IMPERIAL HOTEL HULL LIMITED
- WRAXALL BUSINESS MANAGEMENT LIMITED
- YSCOLDCO 2025 LIMITED
- X-CLAIMS LIMITED
Winding-Up Petitions
- AAGRAH CHAPEL ALLERTON LLP
- DOVER CITADEL LTD
- H A RESTAURANTS LIMITED
- HOEY ROOFING SERVICES LTD
- KLPG (NOTTINGHAMSHIRE) LTD
- LJO CONSTRUCTION LIMITED
- NPS CONSTRUCTION LTD
- STORMPODS LIMITED
- TALENT BY UK LIMITED
- WILLETTS FARM DEVELOPMENTS CO. LTD